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Founding Agreement

This is an unofficial, consolidated version of the Agreement between the Government of the United States of America and the Government of Finland for Financing Certain Educational Exchange Programs, signed at Helsinki July 2, 1952 and entered into force the same day, as amended by the subsequent exchange of diplomatic notes December 12, 1985, entered into force January 1, 1986.

The Country That Paid Its Debts Exhibition

AGREEMENT

between the Government of the United States of America and the Government of Finland for Financing Certain Educational Exchange Programs

The Government of the United States of America and the Government of Finland;

Desiring to promote further mutual understanding between the peoples of the United States of America and Finland by a wider exchange of knowledge and professional talents through educational contacts;

Considering that Section 32 (b) of the United States Surplus Property Act of 1944, as amended by Public Law No. 584, 79th Congress provides that the Secretary of State of the United States of America may enter into an agreement with any foreign government for the use of currencies or credits for currencies, of such foreign government acquired as a result of surplus property disposals, for certain educational activities; and

Considering that under the provisions of the credit agreement letters between the Government of the United States of America and the Government of Finland dated March 11, 1946, May 14, 1946 and May 5, 1947, it is provided that the Government of Finland will at the request of the United States deliver Finnish currency for the payment of expenditures in Finland of the Government of the United States,

Have agreed as follows:

Article 1Educational exchanges between Finland the United States of America shall be administered by “The Finland – U.S. Educational Exchange Commission” (hereinafter designated “the Commission”). The exchanges administered by the Commission are financed through funding granted to the Commission by the Government of Finland and by the Government of the United States of America or through funding granted by the Trust Fund in accordance with paragraph 3 of this Article. The Commission supersedes the organization known as the United Sates Educational Foundation in Finland. The phrases “Educational Foundation” used in Articles 2, 3, 5, 6, 7 and 8 and the “Board of Directors” used in Articles 5 and 7 refer to the Commission.

The funds shall be regarded in the Republic of Finland as property of a foreign government.The funds made available under the present agreement within the conditions and limitations hereinafter set forth, shall be used by the Foundation or such other instrumentality as may be agreed upon the Government of the United States of America and the Government of Finland, for the purpose, as set forth in Section 32 (b) of the United States Surplus Property Act of 1944, as amended, of

financing studies, research, instruction and other educational activities of or for citizens of the United States of America in schools and institutions of higher learning located in Finland, or of the citizens of Finland in United States schools and institutions of higher learning located outside the continental United States, Hawaii, Alaska (including the Aleutian Islands), Puerto Rico, and the Virgin Islands including payment for transportation, tuition, maintenance, and other expenses incident to scholastic activities; or

furnishing transportation for citizens of Finland who desire to attend United States schools and institutions of higher learning in the continental United States, Hawaii, Alaska (including the Aleutian Islands), Puerto Rico, and the Virgin Islands and whose attendance will not deprive citizens of the United States of America of an opportunity to attend such schools and institutions.

Article 2In furtherance of the aforementioned purpose, the Foundation may, subject to the provisions of the present agreement, exercise all powers necessary to the carrying out of the purposes of the present agreement including the following:

Plan, adopt, and carry out programs, in accordance with the purposes of Section 32 (b) of the United States Surplus Property Act of 1944, as amended, and the purposes of the present agreement.

Recommend to the Board of Foreign Scholarships, provided for in the United States Surplus Property Act of 1944, as amended, students, professors, research scholars, resident in Finland, and institutions of Finland qualified to participate in the program in accordance with the aforesaid Act.

Recommend to the aforesaid Board of Foreign Scholarships such qualifications for the selection of participants in the programs as it may deem necessary for achieving the purpose and objectives of the present agreement.

Authorize the Treasurer of the Foundation or such other person as the Foundation may designate to receive funds to be deposited in bank accounts in the name of the Treasurer of the Foundation or such other person as may be designated. The appointment of the Treasurer or such designee shall be approved by the Secretary of State of the United States of America and he shall deposit funds received in a depository or depositories designated by the Secretary of State of the United States of America.

Authorize the disbursement of funds and the making of grants and advances of funds for the authorized purposes of the present agreement.

Provide for periodic audits of the accounts of the Treasurer of the Foundation as directed by auditors selected by the Secretary of State of the United States of America.

Engage an Executive Officer, administrative and clerical staff and fix and authorize the payment of the salaries and wages thereof out of funds made available under the present agreement.

Article 3All commitments, obligations, and expenditures authorized by the Foundation shall be made pursuant to an annual budget to be approved by the Secretary of State of the United States of America pursuant to such regulations as he may prescribe.

Article 4The Finland – U.S. Educational Exchange Commission is composed of eight members, four of whom shall be citizens of the United States and four of whom shall be citizens of Finland. One member of the Commission representing each nationality shall be appointed to act, in turn, as chairman or vice chairman of the Commission for a two-year period. In addition, the principal officer in charge of the U.S. diplomatic mission in Helsinki, (hereinafter designated “the Chief of Mission”), is appointed honorary Chairman of the Commission. The citizens of the United States on the Commission, at least two of whom must be officers of the United States Foreign Service establishment in Finland, shall be appointed and removed by the Chief of Mission. The Finnish members of the Commission shall be appointed and removed by the Ministry of Education of Finland.

The members of the Commission shall be appointed for a four-year term and are eligible once for reappointment for the succeeding four-year period. Individuals may be reappointed at a later date. Vacancies by reason of resignation, transfer of residence outside Finland, expiration of service or otherwise shall be filled in accordance with the appointment procedures set forth in this Article.

The members shall serve without compensation but the Commission may authorize the payment of the necessary expenses of the members in attending the meetings of the Commission and in performing other official duties assigned by the Commission.

Article 5The Board shall adopt such by-laws and appoint such committees as it shall deem necessary for the conduct of the affairs of the Foundation.

Article 6Reports acceptable in form and content to the Secretary of State of the United States of America shall be made annually on the activities of the Foundation to the Secretary of State of the United States of America and the Government of Finland.

Article 7The principal office of the Foundation shall be in the capital city of Finland but meetings of the Board and any of its committees may be held in such other places as the Board may from time to time determine, and the activities of any of the Foundation’s officers or staff may be carried on at such places as may be approved by the Board.

Article 8The Government of Finland shall, as and when requested by the Government of the United States of America for purpose of the present agreement, make available for deposit in an account in the name of the Treasurer of the United States of America in Finland amounts of currency of the Government of Finland up to an aggregate amount equivalent to $1,250,000 (United States currency), provided, however, that in no event shall a total amount of the currency of the Government of Finland, in excess of the equivalent of $250,000 (United States currency) be deposited during any single calendar year.

The rate of exchange between currency of United Sates and the Government of Finland currency to be used in determining the amount of currency of the Government of Finland to be deposited shall be determined in accordance with paragraph 4 of the Credit Agreement Letter of March 11, 1946, as well as paragraph 4 (b) of the Credit Agreement Letters of May 14, 1946 and May 5, 1947.

The Secretary of State of the United States of America will make available for expenditure as authorized by the Foundation currency of the Government of Finland in such amounts as may be required by the Foundation but in no event in excess of the budgetary limitation established pursuant to Article 3 of the present agreement.

Article 9The Government of the United States of America and the Government of Finland shall make every effort to facilitate the exchange of persons (through) programs authorized in this agreement and to resolve problems which may arise in the operations thereof.

Article 10Wherever, in the present agreement, the term “Secretary of State of the United States of America” is used, it shall be understood to mean the Secretary of State of the United States of America or any officer or employee of the Government of the United States of America designated by him to act in his behalf.

Article 11The present agreement shall come into force upon the date of signature.

IN WITNESS WHEREOF the undersigned, being duly authorized thereto by their respective Governments, have signed the present agreement. Done at Helsinki, in duplicate, in the English and Finnish languages this 2nd day of July, 1952.